Intro to Insurance
By doing this consumers can protect their finances and reduce anxiety by obtaining protection against the uncertainty of the future.
What is Transfer Risk
This contract is written on a "take it or leave it basis"
What is a Contract of Adhesion?
This policy form is all-risk on the dwelling and named perils on personal property
What is HO-3?
This coverage pays for bodily injury or property damage to others when the insured is at- fault
What is Liability Coverage?
This Federal program provides flood insurance to homewowners and renters in participating communities
What is the National Flood Insurance Program (NFIP)?
A condition where there is a chance, likelihood, or probability of a potential loss.
What is Risk
This legal principal says that if a legal right is surrendered, the right cannot be enforced afterward
What is Estoppel?
Coverage C on this policy refers to this
What is personal property?
This coverage pays for theft, fire, vandalism, flood, or contact with an animal
What is OTC/Other than collision?
This policy provides both liability and property coverage and used to insure vessels that are no longer than 26 feet long
What is Boatowners Insurance?
This outcome will result in a either a loss or no change in status - there is no possibility for gain
Pure Risk
To insure this property, the applicant/insured has to have the potential to suffer financial economic hardship in the event there is a loss to the property.
What is Insurable Interest?
This section of the policy covers liability for bodily injury or property damage to others
What is Coverage E/Personal Liability
Should you drive a friend's car because yours is being repaired, this will apply
What is Non-Owned Auto coverage?
This coverage allows a mobie home to be moved for relocation while still being insured
What is permission to move/transportation coverage?
An Insurance company will insure against specific causes of loss
What is a Peril?
This occurs when an applicant gives false information that would affect the insurer's decision to accept or decline the risk
What is Material Misrepresentation?
This homeowner form covers the tenant's belongings
What is HO-4?
An insured MUST call the police for these situations
What is hit and run, injury or theft?
This policy provides additional liability coverage above the limit of a homeowners, auto or other primary policies
What is a Personal Umbrella Policy?
This 1999 law requires insurers and other financial institutions to protect customers' nonpublic personal information
What is the Gramm-Leach-Bliley Act?
This acronym describes the 4 Core components of all Property and Casualty insurance policies
An insured must share the loss when they do not carry enough coverage
What is Co-Insurance?
This term describes separate liability limits for bodily injury per person, per accident and property damage
What are Split limits?
Standard homeowners polices usually exclude this type of natural disaster, which requires a separate policy
What is earthquake insurance?